April 16, 2013, 12:55 PM

Bluefly CEO to get 5% of the proceeds if the e-retailer is sold

Bluefly is evaluating its options for staying in business.

Lead Photo

CEO Joseph Park will get 5% of the proceeds if Bluefly is sold.

Bluefly Inc. CEO Joseph Park has another incentive to get the highest sale price for the troubled e-retailer. He will get 5% of the sale price under a deal set by the company’s board of directors.

Earlier this month apparel retailer Bluefly, No. 179 in the Internet Retailer Top 500 guide with $96.3 million in 2011 sales, said it was evaluating strategic alternatives and that it needed additional capital to keep operating.

Bluefly has struggled in the past year as it sought to redefine itself and reverse losses. In January, it outlined a plan to recapture sales lost to flash-sale e-commerce sites. Bluefly’s strategy includes bolstering the connection between its two brands, Bluefly.com, and Belle & Clive, a flash-sale site it launched in 2011.

Bluefly ended 2011 with an $11.4 million loss. It expects that its 2012 loss will be between $24 million and $25 million.

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Devika Girish / E-Commerce

Eight lesser-known uses of beacons for retailers

Beacons, which communicate with consumers’ smartphones, are most often used to welcome shoppers to stores ...

FPO

Mike Cassidy / E-Commerce

Back-to-school shopping knows no season

Shopping for school peaks during the summer, but it goes on all year long. While ...

Advertisement